Wellbeing Diplomas from the Central Bank of Sudan..! – Ink and feather – ✍️ Moataz Abdel Qayyum
In the current circumstances and the war the country is going through, the lack of liquidity at the Central Bank of Sudan constitutes a major challenge facing the Sudanese economy. This is the most important issue related to financial stability and the ability to respond to it. the growing needs of individuals and businesses. Cash liquidity is a fundamental indicator of the health of banking systems, not the other way around. It is therefore crucial to understand the root causes to ensure the stability of the economy and the different causes that lead to such a state of health. the lack of liquidity, the impact of monetary policies and how inflation and macroeconomic issues affect this relatively complex situation seem clear to the central bank; To resolve the problem, it is necessary to sit down with the banks and those who have the expertise to resolve it. . Urgent and effective treatment.
Many reasons lead to the lack of liquidity in the Central Bank of Sudan, starting with the war conditions in addition to the monetary policies followed, which can contribute to severe economic fluctuations and reckless financial decisions aimed at restricting cash liquidity . and inefficient resource management can also lead to a lack of liquidity at the Central Bank of Sudan. Additionally, financial markets suffer from instability, leading to an erosion of confidence in the banking system as a whole. role in the evolution of monetary flows, which leads to the withdrawal of potential investors. All these factors need to be analyzed to arrive at a comprehensive understanding.
Monetary policies and immediate solutions also greatly affect the level of market liquidity. When interest rates rise, financial surpluses are oriented towards the long term rather than being channeled immediately to the market. Therefore, the central bank suffers from the pressure of a lack of liquidity, which can have negative consequences on the economy. On the other hand, policies aimed at increasing supply can lead to increased inflation, making financial solutions ineffective. It is therefore necessary to find a careful balance between the policies followed and the available liquidity area.
Macroeconomics represents an important lever that affects the stability of the banking system, because economic practices such as growth or recession indicate the extent to which banks are able to achieve profitability and offer advances to users whenever the unemployment rates increase or productivity decreases. The liquidity of banks is negatively affected, leading to a reduction in the capacity of banks. To finance economic activities, monetary authorities must adopt modern policies adapted to global and local economic conditions to improve liquidity and restore confidence in financial markets.
In these extremely complex circumstances, inflation also plays a central role in the lack of liquidity, when prices continually increase and the purchasing power of individuals in the markets decreases, leading to a reduction in consumer spending. a decrease in demand for loans, which deprives banks of necessary financial flows, as inflation affects the value of the national currency, leading to a decline in confidence in the financial system. It is important to take effective measures against inflation by benefiting from inflation. the experiences of other countries with this phenomenon.
There are several potential solutions that can be implemented to increase the liquidity of the Central Bank of Sudan, including the adoption of flexible monetary policies allowing for better management of financial resources. The authorities must seek to strengthen the transparency of banking operations in order to restore investor confidence. , economists and businessmen lost, in order to revive transactions within banks in general. Furthermore, the government should increase investment in infrastructure to create attractive economic environments in safe and stable states, in addition to gradually returning to states that have returned. to security after this war. In this context, strategic partnerships and investments with the private sector can play an effective role in improving economic conditions, ultimately there must be a holistic vision that includes all stakeholders to achieve tangible results. must benefit from the experience of other countries to solve the same problem, and it can benefit from the experience of other countries which have gone through similar situations to solve the lack of liquidity, for example. Some countries have been able to improve their liquidity in The Central Bank of Sudan must study these experiences carefully, have a deeper understanding of the banking sector and adapt them to the Sudanese context and its complexity. war conditions, benefiting from previous experiences that could be the key to overcoming future financial crises. Thus, financial stability and development can be achieved in secure states. Addressing the liquidity shortage at the Central Bank of Sudan requires comprehensive and collective strategic thinking. and authorities must carefully analyze the causes and policies in order to develop effective and comprehensive solutions. The profound impact of economic and financial issues, coupled with the complexities the country is going through, will inevitably be a fundamental part of the country's progress and growth. the country, and hope seems placed on the realization of a partnership between the government and the banking sector to achieve lasting and prosperous financial stability.
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